Where is the venue for any legal proceeding related to the Aplus Development Agreement?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| at the time of early termination of the development agreement due to default is excepted from this restriction. | |||
| s. | Modification of the Development Agreement | Sections 13.1 and 13.2 | Must be in writing and signed by all parties |
| t. | Integration/merger clause | Section 13.1 | Only the terms of the development agreement are binding. |
| u. | Dispute resolution by arbitration or mediation | Not applicable | Not applicable |
| v. | Choice of forum | Sections 14.3 | Venue for any proceeding is the court serving the judicial district in which we maintain our principal place of business at the time the action is initiated (currently Dallas, Texas) (subject to state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 53–64)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the venue for any legal proceeding related to the Development Agreement is the court serving the judicial district in which Aplus maintains its principal place of business at the time the action is initiated. Currently, Aplus's principal place of business is in Dallas, Texas. This is subject to state law.
This means that if a franchisee has a legal dispute with Aplus related to the Development Agreement, the lawsuit must be filed in a court within the judicial district that includes Dallas, Texas, where Aplus's main office is located at the time the lawsuit is filed. This is a standard clause in franchise agreements, as it allows the franchisor to manage legal disputes in a location convenient for them.
However, the FDD also notes that this is subject to state law, meaning that certain state laws may override this clause and require the lawsuit to be filed in a different location. Prospective franchisees should consult with an attorney to understand how state law might affect the venue for legal proceedings. Franchisees should also refer to the State Specific Addenda attached to the Disclosure Document for further information.